By Chris Becker
The positive start to the trading year soured on Friday night on the news of the US airstrike assassination of a top Iranian general, combined with a very disappointing ISM manufacturing print saw US stocks fall. US Treasury yields fell alongside the USDJPY pair as safe haven bids took hold, while both WTI and Brent crude prices spiked over 3% in the wake of what could be very explosive Middle East tension.
Looking at Asian share markets on Friday where the Shanghai Composite put in a scratch session, clsoing a few points off to 3086 points, but still well above the previously long held 3000 point resistance level. Meanwhile in Hong Kong, the Hang Seng Index retraced slightly to be down 0.3% to 28461 points after advancing earlier in the session. The daily chart shows how the previous resistance level at 28000 points is now a distant memory, but intraday price action is getting ahead of itself with no pressure anywhere near the high moving average until Friday’s session. This is a harbinger of a possible retracement:
